Tesla’s sales in Germany fell sharply by 59% in January 2024, reaching the lowest point since July 2021. This drop comes as political controversy around CEO Elon Musk grows and the release of the Model Y is delayed.
Sales Slump in Germany
The Federal Motor Transport Authority of Germany reported that only 1,277 new Tesla cars were registered in January. At the same time, the overall
electric vehicle (EV) market grew by 54%. Tesla’s market share dropped from 14% to just 4%. Experts believe this decline is due to several factors, including political tensions over Musk’s public support for
far-right groups.
Musk recently endorsed the
Alternative for Germany (AfD), a far-right political party. His comments at an AfD event, where he criticized Germany’s focus on past guilt and endorsed German values, received a lot of backlash. These remarks might have turned potential buyers away in Germany, a country with strong political and environmental values.
Model Y Delay Affects Sales
Another reason for the sales drop is the delayed release of Tesla’s
Model Y. Many customers seem to be holding off on purchases, waiting for the new model to arrive. This has led to reduced demand for Tesla’s older vehicles.
Declining Sales Across Europe
Tesla’s troubles in Germany are part of a wider trend. In France, Tesla’s sales fell by 63%, and the UK saw a 12% decline. These drops point to bigger challenges in the
European market, where Tesla is facing increased competition and internal issues like inventory shortages following aggressive sales in late 2023.
Musk’s political involvement, including his role as a special government employee in Trump’s administration and his leadership in the controversial DOGE cost-cutting program, has added to the controversy. These issues, combined with operational challenges, have led to questions about Tesla’s future in Europe.
Tesla faces a tough future in Europe as it deals with these challenges. Musk’s political issues and delays in new vehicle releases could continue to hurt sales. Meanwhile, rising competition in the EV market will make it harder for Tesla to maintain its position.
